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- Introduction
- The Basic Leadership and Management Skills
- Ethical Obligations of Nonprofit Organizations
- The Core Competencies of a Nonprofit Executive
- The Role and Responsibilities of the Board
- Getting Volunteers and Management Along
- The Operating Funds Needed and the Strategy for Getting the Funding
- Conclusion
- Reference
Introduction
Settling financial issues is probably the most responsible and complicated task that the nonprofit organization has to accomplish. It is necessary to arrange cooperation at many different levels, such as the governing board, volunteers, the executive, and management. Apart from purely financial aspects that need to be analyzed, there are ethical obligations that nonprofits should meet. The present paper aims to analyze all of the mentioned issues and to suggest a strategy for getting the funding for “Last Chance for Man’s Best Friends.”
The Basic Leadership and Management Skills
There are some skills that nonprofit leaders have to possess even if they do not have any financial training. Generally, nonprofit leaders should be acquainted with the basic requirements that are employed by government agencies and businesses. As Worth (2017) notes, there are no specifically nonprofit ways of processing payroll or establishing the information system. Still, there are some approaches that make nonprofit leaders different from government or business organizations. The first of these skills is the ability to consolidate the mission, strategy, and resource acquisition (Worth, 2017).
In nonprofit organizations, mission, management, and finances are interdependent. To fulfill the mission, it is necessary to obtain resources. At the same time, strategies employed to find money can affect the mission. The major challenge in this respect is that, unlike government and business organizations who usually have a single financial resource, nonprofits have a variety of resources, which requires careful analysis and coordination.
The second skill needed for a nonprofit leader is the ability to negotiate, compromise, and tolerate the issues that arise during work. The structure of nonprofit organizations is rather complex, and one needs to take into account a variety of aspects when arranging its work. The next basic skill is the ability to measure success by the double bottom line (Worth, 2017). “Last Chance for Man’s Best Friends,” as well as other nonprofits, pursues a social mission, and the leader will measure its success by evaluating how the mission is achieved.
However, there is another bottom line, which presupposes the analysis of whether the organization’s financial success allows it to survive. The last of four major sets of leadership and management skills is the ability to deal with the problem that is difficult and frequently remains unrecognized by the public. “Last Chance for Man’s Best Friends” pursues a noble purpose, but it will take the leader much effort to persuade the sponsors to support the organization.
Ethical Obligations of Nonprofit Organizations
The significance of ethical considerations in nonprofits cannot be overestimated since these organizations’ mission relies on trust. Therefore, not only technical managerial aspects but also ethical issues should be taken into consideration when arranging fundraising. It is of utmost importance that the fundraiser should always clearly express his or her intentions of the relationships with the donor and never use this relationship for personal advantage (Worth, 2017). For instance, offering small and seemingly insignificant favors to sponsors may seem like an innocent action, but in the long run, this may lead to dramatic outcomes.
The leader’s responsibility of making sure that the nonprofit is governed and operated in accordance with ethical norms is closely related to the donors’ activities. For instance, ethical concerns may be raised when there are doubts as to whether the money donated has been obtained by the sponsor in a legal way (Worth, 2017). To avoid any misunderstandings, the organization should establish a code of ethics that will contain the major values to which all staff members, volunteers, and donors will adhere. Some of the values to be included in the organization’s code of ethics are as follows:
- commitment to the mission and goals, the major one being bolstering social support for elderly people staying in nursing homes and saving dogs from euthanasia;
- acting in correspondence with moral principles and fair treatment of all participants, employees, volunteers, or sponsors of the project;
- collaboration with various organizations that share the organization’s vision to promote the project’s successful development;
- encouragement of citizen participation and increasing their awareness of the problem;
- promoting the community spirit and explaining the significance of the project for the citizens.
The Core Competencies of a Nonprofit Executive
Nonprofit executives perform a number of functions that are crucial to gain success and the failure of which can undermine all the efforts made by employees and volunteers. The most important of these roles is planning, which involves the CEO’s development of the nonprofit’s vision. This function also presupposes collaboration with the board and creating an understanding of the program’s mission (Worth, 2017). Finally, the executive needs to develop goals that will promote the mission’s progress.
Other functions performed by the CEO include administration, public relations, financial management, fundraising, and leadership. Administrative competencies involve the regulation of the nonprofit’s operations on a daily basis. The executive has to establish, maintain, and promote resources that help the organization to work successfully towards its goals. This competency presupposes the collaboration with staff members and volunteers. The public relations function is manifested through the CEO’s representing the organization as a spokesperson. There are several aspects of this function: the effective promotion of the nonprofit, the arrangement of communication with current or prospective donors, and the advocacy of the organization’s values and mission.
The competency of financial management is the most closely related to the present paper. The CEO is responsible not only for accumulating the necessary financial resources but also for their wise management (Worth, 2017). The executive needs to make sure that the goals enable the creating of logical and successful financial decisions and that there exists a reliable accounting system. Additionally, this role involves the development of risk-management strategies and financial audits. The competency of fundraising consists in collaborating with the board and presupposes that the CEO should develop reliable fundraising systems that will allow “Last Change for Man’s Best Friends” to reach the goals and fulfill the set activities successfully.
Finally, the executive should work together with the board to establish the nonprofit’s leadership team. It is crucial for each of the participants of this teach to realize their capabilities, strengths, and weaknesses. Along with the board, the CEO is accountable for creating and maintaining solid working relationships. Also, the executive should promote the board’s governing function through the timely sharing of relevant data.
The Role and Responsibilities of the Board
The governing board of a nonprofit organization is accountable for guaranteeing that the mission and vision are served and that the organization is functioning successfully. Apart from that, the board performs the crucial boundary-spanning function in the nonprofit’s open system since it connects the organization to its community and constituencies, which frequently involve vital sources of financial support (Worth, 2017).
The governing board is the unity that holds responsibility for governing the nonprofit organization. There may be other boards in a nonprofit, but only the governing one has the legal authority. Other unities may be advisory groups or councils, and their function is assisting to raise funds (Worth, 2017). The terminology employed to designate the board may differ depending on the type of organization. The majority of nonprofits are authorized as corporations, and their governing board members are regarded as the directors of the corporation under the law (Worth, 2017). The person heading the board is referred to as the president or the chair, and the top paid staff member is called the chief executive officer (CEO).
The board has three major responsibilities, which are manifested through the duties of care, obedience, and loyalty. The duty of care is the most important when it comes to financial matters. This duty presupposes the board’s being attentive and diligent when supervising the nonprofit’s financing and the management’s actions (Worth, 2017). Those board members who are inattentive or neglect their direct responsibilities violate the duty of care.
The duty of loyalty presupposes putting the interests of the organization higher than one’s personal concerns. In this relation, the term ‘conflict of interest’ is frequently employed, which means that the member can have interests in some other organization which can be affected by the board’s decision (Worth, 2017). Finally, the duty of obedience necessitates the board’s adherence to the law.
The role of the board in “Last Chance for Man’s Best Friends” is highly important since the organization is new, and it will be necessary to resort to all possible means to obtain financial support for the project. In the beginning, there will be a working board, until the organization grows and becomes able to hire a CEO. Thus, the functional responsibilities of the board will include the following:
- appointing the CEO and monitoring and assessing his job;
- establishing the missing of the organization and setting its goals;
- evaluating and approving the nonprofit’s projects;
- ensuring effective financial management and financial stability;
- authorizing standards for organizational performance (Worth, 2017).
Getting Volunteers and Management Along
It is crucial for the nonprofit leader to arrange the successful human resource (HR) management since HR is the driving force of the organization. Unlike in business, nonprofits do not only have the staff to manage. A crucial role in nonprofit organizations’ work belongs to volunteers. Therefore, the leader should be able to manage both the staff and volunteers in order to reach the mission. A distinction should be made between staff and service volunteers.
The former usually are members of the board, while the latter assist in some activities not on a regular basis (Worth, 2017). Despite some differences between them, it is necessary to analyze the motivation of both groups of volunteers, as well as the staff members, to understand how to get the best outcomes of the organization’s activity.
The systematic management of HR is one or the core functions of a leader. To get volunteers and management along, the leader has to arrange the successful performance of such activities as recruitment, training, retention, and promotion (Worth, 2017). Additionally, it is crucial to note that a systematic approach should be employed. Whereas HR management is most frequently analyzed with respect to employees, nonprofits should take into consideration the role of volunteers when arranging these issues. The most important aspect of HR management in “Last Change for Man’s Best Friends” will be ensuring adherence to the law.
Although employment policies apply to staff members, volunteers may be engaged in some regulations as well (Worth, 2017). Therefore, the leader will need to make sure that none of the laws regulating wages, workplace safety, working hours, or any other aspect could be violated. It is crucial to ensure that both staff members’ and volunteers’ work corresponds to the government’s regulations so that “Last Change for Man’s Best Friends” could bring benefit for the society while following all the rules.
The Operating Funds Needed and the Strategy for Getting the Funding
“Last Chance for Man’s Best Friends” will have several major fund requirements that are reflected in the table below:
In order to obtain the funding, the board and CEO should resort to such opportunities as government grants, private contributions, or charity events. Each of these fundraising options requires thorough consideration and preparation (Worth, 2017). In order to obtain a government grant, the CEO and the financial manager will need to prepare a financial statement which will serve as a basis for explaining why the organization needs the money and why it is worthy of receiving it. Usually, a nonprofit is requested to fill out documents proving that its mission and vision correspond with the grant’s strategy of development.
Private contributions can be made in the form of gifts and donations. For instance, “The Last Chance for Man’s Best Friends” may obtain a place for arranging dogs’ stay for free if the CEO manages to persuade some owner of the premises that the organization pursues a noble mission and follows ethical standards. Charity events may involve marathons, concerts, and other venues where the indifferent people gather to raise the awareness of the nonprofit among others. The primary strategy pursued by “The Last Chance for Man’s Best Friends” will be concerned with arranging some charity events and thus raising the public’s awareness. Later, when the organization becomes recognized at least at the local scale, the CEO will apply for a grant.
Conclusion
Settling the financial matters is one of the most complicated yet significant phases of establishing a nonprofit organization. Because most work will be performed on a voluntary basis, it is necessary to ensure that the CEO, the board, staff members, and volunteers realize the mission and vision of the project and adhere to the principles of ethics. The basic leadership and management skill that can promote the organization’s success is the consolidation of the mission, strategy, and finances.
Other crucial abilities involve negotiation techniques and the ability to measure success by the double bottom line. While the most responsible parties are the board and the CEO, it is necessary for each participant of the project to realize its ultimate goals in order to make “The Last Chance for Man’s Best Friends” truly successful and beneficial.
Reference
Worth, M. J. (2017). Nonprofit management: Principles and practice (4th ed.). Thousand Oaks, CA: SAGE.
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